The U.S. Small Business Administration has concluded the Economic Injury Disaster Loan (EIDL) Advance program that has provided small businesses, nonprofits and agricultural businesses a total of $20 billion in emergency funding, the SBA announced Saturday.
"Following the enactment of COVID-19 emergency legislation, the SBA provided nearly six million small businesses employing 30.5 million people with $20 billion through the unprecedented EIDL Advance program," administrator Jovita Carranza said.
SBA has provided companies with $1,000 per employee up to a maximum of $10,000 under the EIDL Advance. Under the terms of the Advance, recipients did not have to be approved for a loan to support applicants that awaited a decision on their loan application.
Congress appropriated $20 billion and SBA has concluded the funds after reaching the maximum budget. The administration will discontinue EIDL Advances to new applicants. Previous applicants of EIDL loan applications will still be processed even though the Advance is no longer available.
The loan portion of the EIDL program continues to have funds available at a 3.75 percent interest rate for small businesses and 2.75 percent for non-profit organizations, a 30-year maturity and an automatic deferment of one year before monthly payments begin.
"This program, built from the ground up in less than two weeks, assisted millions of small businesses, including non-profit organizations, sole proprietors and independent contractors, from a wide array of industries and business sectors," Carranza added.